What Is The Future Of Banking?
There was a time when a bank's customers would remain loyal for
life. The American mentality during the 50s and 60s was, "my bank
looks out for my financial security." During the 80s this belief
became a relic of the past.
Today's banking customer base changes banks as often as they
change jobs, addresses, and cars-a function of price and features.
Deposit products are not popular, alternative delivery channels are.
"Banks"-multi-function ATM machines-are now found in grocery stores,
department stores, and malls. The gothic bank headquarters downtown
is going the way of T-Rex.
During the next several years, look for more consolidation,
leaving 2-3 major players per market, according to Towers Perrin.
Bank alliances and mergers among smaller institutions will further
shrink the industry.
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